As the market corrects and stays volatile, one justification which is likely to come to market would be comparing current price multiple of stocks to average price earning multiple it was getting till a few months back and investment case would be made. However, relying solely on the P/E ratio for investment decisions can be misleading, as it may not accurately reflect a stock's true value, particularly in cases where a stock seems inexpensive based on this metric alone. The Price/Earnings to Growth (PEG) ratio emerges as a more refined tool for long-term investments.
